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Monday, June 05, 2006

Unretirement: Financial Incentives for Continuing to Work

Nearly a quarter of older workers who describe themselves as "retired" are still working, either full time or part time, and many say working longer pays them big dividends--financial, emotional, or both. Paul J. Lim, writing for U.S. News & World Report, details many of these advantages of "unretirement." Among other things,

working longer gives retirees more time to save--"If you keep working for even two additional years, that's two more years to sock away money into your retirement accounts."

retirees can delay taxes by postponing withdrawals from 401(k) and traditional IRAs;

one can delay tapping into Social Security and thus boost monthly payments;